Back to top

Image: Bigstock

Are Investors Undervaluing FTS International (FTSI) Right Now?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is FTS International . FTSI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Another notable valuation metric for FTSI is its P/B ratio of 1.17. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. FTSI's current P/B looks attractive when compared to its industry's average P/B of 1.89. Over the past 12 months, FTSI's P/B has been as high as 24.53 and as low as 1.17, with a median of 5.19.

Finally, investors will want to recognize that FTSI has a P/CF ratio of 1.54. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.44. Over the past 52 weeks, FTSI's P/CF has been as high as 6.05 and as low as 1.45, with a median of 2.96.

These figures are just a handful of the metrics value investors tend to look at, but they help show that FTS International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FTSI feels like a great value stock at the moment.

Published in